Earnings Preview: What To Expect From Netflix On Tuesday

Netflix is scheduled to release earnings after Tuesday's close. The stock hit a record high of $423.21/share and is trading near $321. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Netflix, Inc., incorporated on August 29, 1997, is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States. The Domestic DVD segment includes services, such as digital optical disc (DVD)-by-mail. The Company's members can watch original series, documentaries, feature films, as well as television shows and movies directly on their Internet-connected screen, televisions, computers and mobile devices. It offers its streaming services both domestically and internationally. In the United States, its members can receive DVDs delivered to their homes. The Company had members streaming in over 190 countries, as of December 31, 2016. Its subsidiaries include Netflix Entretenimento Brasil LTDA, Netflix K.K., Netflix International B.V., Netflix Streaming Services, Inc., NetflixCS, Inc. and Netflix Studios, LLC.

Competition:

The Company competes with other media/content companies such as: Comcast, Amazon, AT&T, Verizon, and Time Warner, just to name a few.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.